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What Is An Amazon Vendor?

Amazon is the world’s biggest online marketplace that invites Sellers and entrepreneurs from all over the globe to sell their products on Amazon. However, selling on Amazon requires a proper strategy that needs multiple things to take into account. That means you should have a product catalog, descriptions, marketable images, pricing, and a good understanding of Amazon. But this could be easily handled by availing the right Amazon account management services if you don’t want to step into a bigger hassle. What’s even more important is choosing how would you be selling. Will you be selling through an Amazon vendor or as an Amazon seller? Wait! Don’t you know what an Amazon vendor is? Or how is it different from Amazon sellers? Don’t worry. Instead, let’s dive deep into the differences, benefits, and functionalities of each to help you decide which one you should choose.

What Is An Amazon Vendor And Amazon Vendor Central?

Amazon Vendor: Amazon vendor sells all his products in bulk to Amazon and resells them. That means, a vendor is a distributor, supplier, and sometimes a manufacturer who is directly bridged with multiple Amazon warehouses. What it means is, you don’t have to deal with multiple customers, you will only have to sell your products in bulk to Amazon and it will take care of the rest.

Amazon Vendor Central: If you sell through an Amazon vendor, that means you’re using Amazon Vendor Central. Mostly used by distributors and manufacturers, selling through vendor central makes you the first-party seller. Just that you act as a supplier who sells his products in bulk to Amazon instead of dealing directly with individual customers. Although the registration on Vendor central is normally and strictly done through invite sometimes sellers start from seller central and work to increase their products demand. This way they enhance their visibility to Amazon to bring them under vendor central program. If you see the “ships from and sold by Amazon” phrase on the order page, that means the brand or company is selling through vendor central.

What Is An Amazon Seller And Amazon Seller Central?

Amazon Seller: Amazon seller is a company or brand that directly sells its products to buyers through the Amazon marketplace. Using the seller central portal, Amazon sellers own the products in their inventory until a customer purchases or receives them. 

 

Amazon Seller Central: Amazon seller central is considered a third-party marketplace that asks sellers to set and maintain their seller account on their own or by taking some professional Amazon account management services. However, Amazon also offers a professional seller account in addition to an individual account. Although a professional account demands a monthly subscription, it is preferred by many merchants. Because it provides analytics tools, preferential marketing, and some other tools that an Amazon seller needs to scale and grow its business.

How To Know Which Central Should You Choose:

Although the main difference between the two is who is selling the product, choosing each one comes with multiple advantages and disadvantages. So to know which one to choose let’s look at the comparison of the two.

Comparison between An Amazon Vendor And Amazon Seller:

  • Amazon seller central is open to all which means anyone can set up a seller account. However, vendor central requires an invitation from Amazon.
  • With seller central, you sell directly to customers while with vendor central, you sell to Amazon.
  • Seller central has flexible logistical options but logistical options for vendor central are fixed.
  • Terms of payment are quick in seller central but are traditional in vendor central.
  • With seller central,the company can control retail prices but with Vendor central Amazon controls them.
  • Seller central provides limited advertisements options but vendor central has multiple advertisement options.
  • Seller central has a complex sales process but vendor central has a traditional sales process.
  • Seller central has enhanced brand content in comparison to vendor central that provides A+ brand content.

Note: Reading this all, you must have realized one thing that entering seller central doesn’t require as much effort as entering the vendor central. So if you are thinking of applying to vendor central you should have a good insight into the pros and cons of Vendor Central. Because you should not put your effort and energy into something if you haven’t visualized it fully.

Also see: How to Open an Amazon Account after Suspension

Pros And Cons Of Amazon Vendor Central:

Before you step into Amazon vendor central, you should consciously think of all the negative and positive sides of it. Moreover, think about how it will help or affect your business. To help your decision, have a look at some of the pros and cons of it.

Pros Of Amazon Vendor Central:

Customer Confidence:

Selling through Amazon vendor central increases customer confidence in your products. That means Amazon brand name recognition ensures whatever they will buy is fully tested and verified by Amazon itself. This left no doubt that further increases their trust and makes a purchase decision easier for them. 

Simplified Selling Process:

Selling through vendor central saves you from a lot of hassle associated with seller central. That means, you no longer need to worry about tax liabilities, inventories, customer dealing, and other business-related costs. Selling through Amazon eases it for you as then you only need to fulfill purchase orders and Amazon billing. Amazon will take care of everything that comes before or after.

Promotional Programs:

Becoming a vendor allows you to participate in multiple programs as Subscribe and Save, Amazon Vine, etc. These can help in boosting your reviews, placement in organic sales, and increasing sales.

Cons Of Amazon Vendor Central:

Control Over Retail Prices:

Amazon doesn’t give control over prices to vendors. That means, it can change prices anytime that can also result in your loss if the margins are not aligned.

Loss Of Control Over Brand:

Becoming a vendor means you lose control over your brand and can’t even own the customer experience. That’s because Amazon will ship the products in brown standard Amazon boxes. That will ultimately vanish the brand from making its unique appearance.

Fixed Logistical Options:

You should be very quick in fulfilling your orders and maintaining the stock levels. If you for some reason can’t meet Amazon’s logistical requirements, Amazon will cut it from your profit.

Conclusion:

If the seller central comes with a lot of hassle, even vendor central is not beneficial for everyone. That means, it can even cause you long-term loss if Amazon stops having you as a vendor. So if you are just starting up, you should go for seller central. No doubt, to maintain your company’s growth and visibility you will need to take care of optimization, marketing, imaging cataloging, and much more. Moreover, you will also need to have an amazing advertisement campaign. But that’s no longer a worry for you. If you ever want to take Amazon PPC services for adjusting your ad campaigns, urtasker is your go-to place. Avail their services to witness how magically they can facilitate you as an Amazon seller and thank me later.